alleryStart learning →A loss of 30,000 arises and the firm has a profit reserve of 10,000. How much falls on capital?
A10,000
B20,000
C30,000
D40,000
Answer & Solution
Correct answer: B. 20,000
Profits are applied first, so 30,000 less 10,000 leaves 20,000 to come from capital.
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